Real estate experts in Atlanta, Georgia have stated that the housing crisis has impacted almost all types of real estate, including commercial buildings, retail shops and townhouses and vacation homes for rent. They estimated that around 22% of these pieces of real estate were unoccupied during the second quarter of 2010. This means that the city has a higher vacancy rate in this segment than almost 70% of similar markets in other parts of the U.S.
A study conducted by commercial real property company Jones Lang LaSalle revealed that retail premises in Atlanta had a vacancy rate of over 16% during the second quarter of the current year. This is higher than the 12.6% average vacancy rate for similar structures for the same period nationwide as estimated by the National Association of Realtors.
Vacancy among office buildings, townhouses for rent and retail premises was expected to cause property prices to decline and lease rates to go lower than ever before. However, some property owners have found ways to get their buildings and townhouses occupied, but only after suffering some financial loss on their part.
According to real estate observers, some owners of Atlanta office buildings, vacation homes for rent, townhouses and retail shops were able to sell their units after cutting down their selling prices by as much as 30%. Analysts have stated that this could worsen the whole commercial real estate market since competing developers will have to keep up with their neighbors' low rates to attract occupants and buyers.
In other parts of the city, development projects remain under construction for a long time, while some are involved in foreclosure proceedings and lawsuits. Meanwhile, other finished projects are sitting vacant waiting for buyers and renters to take over the units.
One of the condominium buildings in the city, Castleberry Point, was able to sell off 60% of its units after cutting down the price by around 40%. Another commercial structure, One Riverside, reportedly offered some of its units for a 20% discount just to get them occupied.
According to local market analysts, these discounts have become common among offices, retail buildings and vacation homes for rent after banks and lenders foreclosed on most of these development projects, particularly those that failed to complete the project to its end.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.
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